Figure and Then Point Your Way to Major Profits

We get it, the reader has a busy life, how can the reader maintain a stock
portfolio keep up with chart patterns and avoid the noise that so rounds the
stock market to remain profitable. Simply we say understand a little about
point and figure charts are you will be yards ahead of the crowd.

Why use Point and Figure Charts?

Your stock went up $1.00 on Monday and continued down $.63 on Tuesday. It
went back up $1.40 on Wednesday while falling down $.30 on Thursday. When you
take a look at the intraday charts you see something frustrating and erratic.
No price at which to sell is clear. If only there were a method to eliminate
some of the noise perhaps the stock trend would be somewhat clearer. For this,
many turn to point and figure charting, because it aids in reducing noise and
elucidating market tendencies. Point and figure charting displays the interplay
between these two fundamental forces of the marketplace, while at the same
time not tracking relatively insignificant changes.

Point and Figure Calculation

Point & Figure charts display an "X" when prices rise by the "box size" (a
value you specify) and display an "O" when prices fall by the box size. Note
that no Xs or Os are drawn if prices rise or fall by an amount that is less
than the box size.

Each column can contain either Xs or Os, but never both. In order to change
columns (e.g., from an X column to an O column), prices must reverse by the "reversal
amount" (another value you specify) multiplied by the box size. For example,
if the box size is three points and the reversal amount is two boxes, then
prices must reverse direction six points (three multiplied by two) in order
to change columns. If you are in a column of Xs, the price must fall six points
to change to a column of Os. If you are in a column of Os, the price must rise
six points to change to a column of Xs.

The changing of columns identifies a change in the trend of prices. When a
new column of Xs appears, it shows that prices are rallying higher. When a
new column of Os appears, it shows that prices are moving lower. Because prices
must reverse direction by the reversal amount, the minimum number of Xs or
Os that can appear in a column is equal to the "reversal amount."

Supply and Demand with Point and Figure Charts

Point & Figure charts display the underlying supply and demand of prices.
A column of Xs (Blue) shows that demand is exceeding
supply (a rally); a column of Os (Red) shows that
supply is exceeding demand (a decline); and a series of short columns shows
that supply and demand are relatively equal. Whichever resides in the row furthest
to the right has control of the marketplace at the moment. When supply outpaces
demand, price falls. When demand outpaces supply prices rise.

Wyckoff Mark Up and Mark Down Phases

As stated above, when either the blue Os or the red Xs dominate you will have
demand or supply in control, and thus as mark up or mark down phase present.
If the supply and demand point and figure pattern is inconclusive you will
no doubt have either (re) accumulation or (re) distribution present. Use of
the 45 degree trendline in point and figure charts also aids the Wyckoff Student
as to overall trend of the stock.

We are financial market enthusiasts using methods expressed by the Gann, Hurst
and Wyckoff with a few of our own proprietary tools. Readtheticker.com provides
online stock and index charts with commentary. We are not brokers, bankers,
financial planners, hedge fund traders or investment advisors, we are private
investors.

LEGAL DISCLAIMER: The material is presented for educational purposes
only and may contain errors or omissions and are subject to change without
notice. Readtheticker.com (or 'RTT') members and or associates are NOT responsible
for any actions you may take on any comments, advice,annotations or advertisement
presented in this content. This material is not presented to be a recommendation
to buy or sell any financial instrument (including but not limited to stocks,
forex, options, bonds or futures, on any exchange in the world) or as 'investment
advice'. Readtheticker.com members may have a position in any company or security
mentioned herein.